As Litecoin approaches its third halving, analysis shows it to be the most significant time yet.
From a recent tweet thread Alex Scimitar Capital, a proprietary cryptocurrency trading company, said,Whether Litecoin should exist anymore. ”
At the heart of the thread was a price chart with previous halvings overlaid with price increases on the Y-axis based on the number of days before and after the event.
Alex pointed out that in previous halvings, the expected upward price trend began in the period -100 days ago, with a price peak seen -50 days ago.
At current block production rates, upcoming halvings will occur in the following years. 79 After this date, the block reward will be reduced from 12.5 LTC to 6.25 LTC.
Alex pointed out that the price of Litecoin has not yet reacted like it did in previous halvings. However, he acknowledged that drawing conclusions from just two data points may not be a reliable methodology.
why this matters
Alex said this is worrying because the halving is a “vote of confidence in the network” given the lack of price response so far.
“People bidding on Halfnings actually means a vote of confidence in the network that it’s worth keeping the network secure.
Bitcoin halving in 2024 likely to be a powerful correction for all forms of bidders
Because Bitcoin’s survival is worth it. ”
He wondered if the apathy shown so far might be the problem. signal Opinion from the market that Litecoin is “not worth saving”.
He then said he did not believe Litecoin was ready to die just yet, downplaying the indifference as the lack of supporting narrative to fuel the bullish sentiment.
In support of this view, Alex called attention to the spike in on-chain activity since May 3rd caused by the rollout of the LTC-20 token standard. Along with this, active addresses hit a record high last week.
Summary,”There is a disconnect between on-chain attention and indifference in price action‘ said Alex. However, the decline in altcoins in recent weeks could be a (temporary) factor.
He concluded by saying that if the pump does not materialize within the next 100 days, “it could be the end of litecoin, along with other dinosaurs.”[aurs]”, it becomes meaningless.
This article, “Litecoin is on the verge of death as halving approaches” was first published on CryptoSlate.